Key Points
- Crypto VC Portal Ventures has increased its investment in Bitcoin’s L2 scaling solution, Stacks.
- Stacks is set to launch its sBTC mainnet on 16 December, expanding its Bitcoin staking capabilities.
Crypto VC Portal Ventures has increased its investment in Bitcoin‘s L2 scaling solution, Stacks. The venture capital firm cites strong fundamentals and low selling pressure as the reasons for this move.
Stacks’ Position in the Market
Catrina Wang, a partner at Portal Ventures, underscored Stacks’ first mover advantage as a Bitcoin L2 with over a decade of experience. She believes the protocol’s potential is significant, given the ongoing resurgence of Bitcoin and its DeFi ecosystem.
Stacks is unique in that it offers institutional investors a native Bitcoin staking yield on the original crypto network without counter-party risk. All of Stacks’ supply has been unlocked, which means there’s no more selling pressure from early investors, unlike other venture-backed coins.
Whale Activity and Price Trends
Despite a decrease in long positions by whale investors in December, the uptrend for Stacks has remained strong. This is evidenced by the Average Directional Index (ADX) staying above 20. If the momentum continues, Stacks could potentially reach its 2024 high of $3.8.
Stacks is also preparing to launch its sBTC mainnet on 16 December. This will enhance its native Bitcoin staking capabilities and allow programmable Bitcoin to move to the Stacks blockchain. This could potentially open up more DeFi capabilities on Bitcoin’s network.
The upcoming update could act as a positive catalyst for Stacks. However, the short-term reaction of Stacks’ price to this development remains uncertain.